When working as an investor or within the investment realm, Bilal Basrai and his colleagues know that information is one of the most important tools of the trade. Here he explains how equity research is used as one of those all-important tools.
- Equity research is not limited to equity alone, but can also include research into commodities and bonds. The equity research department may be found on either the sell-side or buy-side of the asset, and sometimes through both venues.
- During their routine tasks, those responsible for equity research are responsible for three areas of work, that of actual research, projections, and reporting. Throughout the research phase, it is necessary to evaluate the company itself, the surrounding economy, and the company’s competitors.
- Much of the sell-side equity research is not useful to their own department, and in fact helps the buy-side more than anyone else. While the sell-side research team may feel they are working in vain, their efforts are really effective for other departments who do not have the time or resources to do the research themselves.
- Most equity researchers who find long-term success in their field are exceptional at marketing, content, or both. If a business is looking to hire an equity researcher, those are the top two skills the business should seek in their new employee.
- The largest job of any equity research division is to provide a constant thread of communication between corporations and investors. With the research they garner and the projections they are able to spin, the corporation stands to gain more investors and therefore larger amounts of capital in which to spread throughout the business.
- Bilal Basrai finds that equity research is a vital part of the investment world that will only continue to show more growth and importance.